UPMC's board is a silent but powerful force in fate of region's health care

Reporting Julian Routh | September 9, 2019

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s its feud with rival health insurer Highmark threatened to block thousands of patients from accessing its own facilities, UPMC’s 24 board members — tasked with steering the nonprofit’s vision — remained largely silent and picked up a few powerful detractors along the way.

These are the 24 who, according to nonprofit experts, decide whether President and CEO Jeffrey Romoff remains at the helm, how much he is paid and whether his policies and management style align with the nonprofit’s mission. They are supposed to oversee how the organization adapts to the community’s evolving needs.

But UPMC’s board of directors — made up mostly of philanthropists and high-profile executives from across the region — has faced criticism over its stewardship of the charitable assets behind one of the largest health care nonprofits in the country.

When Pennsylvania Attorney General Josh Shapiro was pursuing a legal remedy to the UPMC-Highmark divorce earlier this year, his office sought to replace all of UPMC’s board members by 2020 for their alleged failure to oversee the organization in keeping with its charitable mission. The state, in its original February court filing, wrote that UPMC’s executives and board “appear to simply prefer the status and perquisites associated with purely commercial pursuits rather than furthering the public’s interests in high-quality, cost-effective and accessible health care.” UPMC denied all claims in court.

Even after the two rivals signed a landmark 10-year agreement in June to give many Highmark members access to UPMC doctors, some local elected officials said the board shouldn’t be off the hook just yet.

“My fear, especially because there’s appearance there’s some finality here, [is that] though there’s been some successes, the board and organization goes back not only to business as usual but perhaps ratchets it up because they’re going to have more power,” Allegheny County Controller Chelsa Wagner said, adding that she still worries about patients’ access to UPMC facilities.

After the June announcement of the agreement ending the near-decadelong contract dispute, the Pittsburgh Post-Gazette asked all 24 board members who were serving on the board while the agreement was reached to participate in an interview about their approaches to serving on the board, their personal backgrounds, their individual roles in the agreement and their perspectives on the board’s future.

Fifteen did not respond, four declined comment outright, and five told the Post-Gazette to contact UPMC spokesman Paul Wood instead. Upon request, Mr. Wood said, “I will not make UPMC board members available for interviews on this subject” and declined to answer why. He also declined to comment on the board’s role in the UPMC-Highmark agreement.

Although UPMC’s board members have been traditionally tight-lipped, their silence over the past few years of the contentious battle between health care systems — even as their board came under direct scrutiny from the state attorney general’s office — struck some as unbecoming of a charitable organization.

“To me, by them not opening their mouths, it’s like Mr. Romoff has a board that he controls, and they do whatever he wants to do,” said state Rep. Tony DeLuca, D-Penn Hills. “That’s not what a board is supposed to do.”

In most nonprofits, boards are tasked with overseeing the integrity of the organization and setting its strategic direction, which is then carried out by the executive staff, according to nonprofit experts. They’re the ones who ensure that nonprofits are faithful stewards of their charitable assets.

“Fundamentally, a nonprofit board’s responsibility is to the mission of the organization,” said David Renz, director of the Midwest Center for Nonprofit Leadership at the University of Missouri-Kansas City. “By virtue of being a nonprofit, that inherently means to the community and the group of constituents or stakeholders that are to be served by that nonprofit organization.”

Because they’re “beholden to the public to ensure that the organization carries out its charitable mission in the best possible way,” nonprofit boards typically choose members from a cross-section of the community, said Dennis Young, founding and current editor of Nonprofit Policy Forum and professor emeritus at Georgia State University.

Of 24 total members on the UPMC board, one-third are appointed by the University of Pittsburgh’s board of trustees. The remaining two-thirds are either elected from the community at large or have been historically involved in leading UPMC’s hospitals. The board is unpaid but sets the salary for Mr. Romoff, who made more than $6.8 million in fiscal year 2018, according to UPMC’s Internal Revenue Service Form 990 filings. Mr. Wood declined to answer how exactly the community and hospital-affiliated members are chosen or elected.

Of the 24, two are employed and compensated by the University of Pittsburgh. Chancellor and CEO Patrick Gallagher made more than $750,000 from the university and its related organizations in Pitt’s 2018 fiscal year, while Dr. Arthur Levine, senior vice chancellor for the health sciences, took home more than $1 million. In the same time frame, as Pitt received more than $200 million from UPMC for research and academic matters, Dr. Levine banked $389,000 from UPMC.

The UPMC board’s remaining 22 members are not employed by UPMC or Pitt, but seven have disclosed conflicts of interest or intraboard business relationships on UPMC’s tax filings. Such relationships are not illegal but must be disclosed in order to prevent conflicts of interest from impacting charitable pursuits.

Ms. Bellin’s food distributor, Paragon, was paid $3.64 million by UPMC in fiscal year 2018 for “wholesale food distribution,” as it reportedly provides food for UPMC Children’s Hospital of Pittsburgh’s cafeteria.

Howard Hanna’s subsidiary, Relocation Services, which is chaired by Mr. Hanna, too, was reimbursed by UPMC for employee relocation expenses totaling nearly $2 million from 2015 to 2018, according to tax filings.

Board Chairman Nicholas Beckwith and fellow board member Mark Laskow are in a business relationship together. Richard Hamilton and W. Duff McCrady are, too. A family member of board member Robert Montler is employed by UPMC Altoona Hospital, making approximately $242,000 in fiscal year 2018.

Although it wasn’t disclosed on the filings, Mr. Beckwith and his wife, Dorothy, are directors and co-founders of The Beckwith Institute. According to its webpage, the research fund is fully funded by UPMC and works to “systematically improve outcomes, reduce costs, maximize efficiency, and enhance the patient experience throughout the UPMC system.”

UPMC requires the board to comply with its own conflict-of-interest policies, including that each transaction is “negotiated at arm’s length and based upon fair value” and that interested parties abstain from related decision-making. Members are required to complete annual questionnaires, which are used to identify possible individual and institutional conflicts of interest.

“If a potential conflict is identified regarding a specific UPMC activity, the Corporate Compliance Department, with the assistance of the Legal Department, helps to develop a written plan designed to prevent the conflict from influencing decisions related to that activity,” UPMC’s policy reads.

Nonprofits typically like to stack their boards with “strong and powerful” members because of their fundraising prowess, Mr. Renz said — but it’s not just about engaging with the powerful. Another responsibility is representing the organization in the community and helping it connect with “key constituents and stakeholders,” he asserted.

To this end, UPMC falls short, said Ms. Wagner — which is problematic for a group of 24 that is responsible for “the life-and-death health outcomes of our population” and for stewarding “a massive amount of subsidies of taxpayer dollars,” she said.

“I don’t see, in terms of board composition, the holistic community representation,” Ms. Wagner told the Pittsburgh Post-Gazette in July. “You have a lot of different business associations, but I don’t see a board composition that’s at least inclusive, if not representative of the fact that this is an organization organized as a charity under Pennsylvania law that should be doing a number of different things.”

Ms. Wagner expressed concerns — as have others — about the relationship between the board and UPMC executives, particularly Mr. Romoff.

It’s a relationship that should, ideally, be a partnership, nonprofit experts say. But it is the board’s job ultimately “to hold the CEO accountable for the performance it believes is essential to the effectiveness or the success of the organization,” Mr. Renz said.

Mr. Wood declined to detail the board’s specific set of powers and responsibilities, among a series of other questions. He referred the Post-Gazette to UPMC’s website and to two pages from the nonprofit’s May 30 bond offering, which provided basic information about the board, including that its directors serve three-year terms and are limited to three consecutive terms, with certain exceptions.

Ms. Wagner said it’s not often that the community hears from the governance of UPMC. With that in mind, she tried to speak up at a meeting of its UPMC Presbyterian Shadyside board in May, flanked by a few hundred hospital network employees and Service Employees International Union activists. Mr. Beckwith, who chairs that board, too, told them to take it up with the “governing folks,” she recalled.

Unlike those on city councils or government boards, nonprofit board members aren’t typically encouraged to speak out publicly, according to experts. If they have disagreements, their obligation is to express them internally.

“It is, in fact, an ethical obligation of a board member not to speak on behalf of the board unless the board delegates the responsibility or authority of doing so to them,” Mr. Renz said.

Although the attorney general’s office has indicated it will continue to monitor nonprofits moving forward, Ms. Wagner said she supports making changes to the UPMC board, and said it isn’t OK to turn a blind eye now.

Chairman G. Nicholas Beckwith IIIArch Street Management, Chairman and Chief Executive OfficerWhat he brings to the board: Nearly three decades of leadership at UPMC (which began in 1991 when he was elected chairman of Shadyside Hospital’s Board of Trustees) and years in private industry with Beckwith Machinery Co. (and, currently, Arch Street Management LLC, a holding company).What he’s said publicly about UPMC-Highmark saga: Mr. Beckwith adjourned a May meeting of UPMC Presbyterian Shadyside’s board early as protesters argued UPMC violated its charitable nonprofit mission.
In June 2013, after UPMC’s board decided not to extend its contract with Highmark, Mr. Beckwith wrote an editorial in the Post-Gazette outlining its rationale: “In sum, if Highmark wants to shift 41,000 hospital admissions a year from UPMC to West Penn Allegheny and the other hospitals of AHN here in southwestern Pennsylvania, it will have to appropriately compete with UPMC and the region’s independent community hospitals. It will have to compete based on quality, cost and value without relying on a sleight-of-hand contract that would allow Highmark to offer its insurance subscribers nothing more than the illusion of UPMC access while steering them into West Penn Allegheny and the other hospitals of AHN.”How he responded to the Post-Gazette’s request for an interview: Mr. Beckwith did not respond.Background: Mr. Beckwith was named chairman of UPMC Health System in 2002, and said he was optimistic at the time about a contract settlement back then with the region’s dominant insurer: Highmark Inc.
His roots at UPMC started at Shadyside Hospital, where he was chairman when it merged with UPMC in 1997. He also reportedly played a major role in creating the Hillman Cancer Center on the Shadyside campus.
He previously was the president and CEO of Beckwith Machinery Co. -- a large family-run firm that sold construction equipment -- in Murrysville, Pa. In 2005, the company was sold to Cleveland Brothers Holdings Inc., and Mr. Beckwith was set to head Arch Street Management -- a holding company for family investments and for its materials handling business.
He is a member of several other boards, including the Beckwith Family Foundation and the Claude Worthington Benedum Foundation.
He and his wife are directors and co-founders of The Beckwith Institute, “fully funded” by UPMC. Since 2012, it has supported more than 100 research projects “designed to challenge the status quo and disrupt traditional approaches to redefine health care delivery and patient care,” according to its website.What we can learn about him from UPMC’s 990s: Mr. Beckwith is in a business relationship with fellow board member Mark Laskow. It’s a relationship that has at least extended back to 2015. UPMC Spokesman Paul Wood declined to characterize this relationship further. Previous
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First vice chairman Eva Tansky BlumPNC Bank, former executive vice president and director, community affairsWhat she brings to the board: A longtime association with the University of Pittsburgh (she chairs its board) and decades of executive leadership at PNC (and its foundation).What she’s said publicly about UPMC-Highmark saga: Nothing.How she responded to the Post-Gazette’s request for an interview: Ms. Blum did not respond.Background: Ms. Blum was formerly the chairman and president of the PNC Foundation. When she retired as chair in 2015, she was credited with starting the bank’s signature philanthropic initiative, Grow Up Great, a $350 million commitment to support early childhood education.
Elected as a University of Pittsburgh board trustee in 2004, Ms. Blum went on to chair the chancellor search committee in 2013 that recommended Patrick Gallagher’s hiring. She took over as board chairman in 2015, becoming the first woman to hold the post in Pitt’s 228-year history. She succeeded Stephen Tritch, who is also a UPMC board member. In June, she was appointed to her fifth and final term as chair.
During her near four-decadeslong career at PNC, she held several executive posts. She came on board at PNC in 1977 after practicing law at USAir and the federal Commerce Department. Previous
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Second vice chairman Mark J. LaskowGreycourt & Co. Inc., managing directorWhat he brings to the board: Philanthropic leadership as chair of the Carnegie Hero Fund Commission and nearly two decades of experience as the managing director of a group of experts that deals with managing family wealth.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Laskow did not respond.Background: He has managed Greycourt & Co., a financial advisory services firm, since 2000.
Since 2012, he has chaired The Dietrich Foundation, which hands down the gifts of William S. Dietrich to universities, communities and institutions. Mr. Laskow also chairs the Carnegie Hero Fund Commission.
A Bucks County native, Mr. Laskow moved to Pittsburgh for law school and landed a position at Reed Smith. There, he met Thomas Hilliard Jr. while working for Henry Hillman. He has credited Mr. Hilliard for changing his life.What we can learn about him from UPMC’s 990s: Mr. Laskow is in a business relationship with fellow board member and chairman Nicholas Beckwith. It’s a relationship that has at least extended back to 2015. UPMC spokesman Paul Wood declined to characterize this relationship further. Previous
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Robert M. HernandezUSX Corp., former vice chairman and chief financial officerWhat he brings to the board: Longtime corporate experience with Marathon Oil Corp.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Reached by email, Mr. Hernandez wrote, “I have no interest in talking to you” and took issue with the reporter’s use of his professional email address.Background: Mr. Hernandez served as Marathon Oil Corp.’s chief financial officer for a decade up until 2001, and as vice chairman until then, too.
Since 2004, he has been an independent lead director at Chubb Limited, which offers insurance services.
He is a trustee of the University of Pittsburgh, where he earned his undergraduate degree in economics and mathematics. Previous
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Elaine M. BellinParagon Foods, president and CEOWhat she brings to the board: More than two decades of leading one of the region’s leading wholesalers supplying restaurants, health care facilities and colleges with local food.What she’s said publicly about UPMC-Highmark saga: Nothing.How she responded to the Post-Gazette’s request for an interview: Ms. Bellin did not respond.Background: Ms. Bellin has worked for Paragon Foods for more than three decades and has been president for more than two of those.
Under her leadership, “she’s brought a $12 million company to more than $80 million in annual revenue and nearly 200 employees,” according to a 2017 article in Smart Business.What we can learn about her from UPMC’s 990s: UPMC discloses two conflicts of interest related to Ms. Bellin.
In 2017 and 2018, Paragon Foods — of which Ms. Bellin is owner — was paid approximately $3.64 million total by UPMC for “wholesale food distribution.” According to Sustainable Pittsburgh Restaurants, UPMC Children’s Hospital of Pittsburgh purchases food from Paragon for its cafeteria. David Renz, director of the Midwest Center for Nonprofit Leadership at the University of Missouri-Kansas City, said, “Hopefully, the contracts would have been awarded to her organization” without her participation in the process, although those details aren’t public record.
From 2015 to 2018, Paragon purchased health insurance from UPMC totaling more than $2.3 million. Previous
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Howard W. Hanna IIIHanna Holdings Inc. and Howard Hanna Real Estate Services, chairman and CEOWhat he brings to the board: Longtime leadership of the third largest real estate company in the U.S. (which is owned by his family) and familiarity with UPMC Children’s Hospital of Pittsburgh (of which he serves as board chairman).What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Hanna did not respond.Background: Mr. Hanna has served as chairman of the region’s No. 1 real estate firm, the O’Hara-based Howard Hanna Real Estate Services. The oldest of three Hanna children, he began to sell real estate two weeks after his high school graduation and became involved in the family-owned business, according to an alumni magazine article.
Mr. Hanna has chaired the UPMC Children’s Hospital of Pittsburgh board since 2014, when he replaced Mary Jo Dively. He had previously served as chair of the Children’s Hospital of Pittsburgh Foundation.
Mr. Hanna chairs the annual Howard Hanna Children’s Free Care Fundraising drive, which has raised millions of dollars for local children’s hospitals.What we can learn about him from UPMC’s 990s: UPMC discloses two conflicts of interest related to Mr. Hanna.
From 2015 to 2018, Howard Hanna Mortgage — of which Mr. Hanna is chairman and CEO — purchased health insurance from UPMC totaling nearly $6 million (approximately $1.99 million in 2017-18, $1.89 million in 2016-17 and $2.06 million in 2015-16).
During the same time period, Relocation Horizons — of which Mr. Hanna is listed as chairman and CEO — was reimbursed by UPMC for employee relocation expenses totaling nearly $2 million (approximately $510,000 in 2016-17, $1.17 million in 2016-17 and $270,000 in 2015-16). Relocation Services, a subsidiary of Howard Hanna Co., provides relocation services to corporations and transferees. Previous
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Robert G. LovettLovett Bookman Harmon Marks LLP, partnerWhat he brings to the board: Decades of experience in law, particularly in the field of estate planning and estate and trust administration.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Reached by phone, Mr. Lovett said he is “not interested” in an interview. “I don’t think it’s necessary. Any questions you have about the board, I would suggest you call [UPMC spokesman] Paul Wood.”Background: Mr. Lovett has worked as a partner at Lovett Bookman Harmon Marks LLP since 2003. Before that, he spent a few decades at Reed Smith LLP working in trusts and estates. He once chaired the Real Property, Probate and Trust Law Section of the Pennsylvania Bar Association.
He is a University of Pittsburgh board member, as well as a member of the Pitt Varsity Letter Club. He was once president of the Pitt Alumni Association board of directors (during which he was “instrumental in securing funds to initiate the endowment of the association’s alumni scholarship program,” according to Pitt) and was named director emeritus in 2009. Previous
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Robert W. MontlerLee Industries Inc., president and CEOWhat he brings to the board: More than three decades of experience leading a custom processing company and familiarity with UPMC Altoona (of which he’s a board member).What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Montler did not respond.Background: Since 1996, Mr. Montler has served on the board of UPMC Altoona, where he “played a pivotal role as the former Altoona Regional Health System evaluated its options to ensure a secure future that enhances patient services and the financial strength of our hospital” and joined with UPMC, former UPMC Altoona President Jerry Murray said in a 2016 article in UPMC Altoona’s Healthy Living Magazine.
Mr. Montler and his wife, Sue, made a $200,000 commitment to the UPMC Altoona Breast Health Center capital campaign, which was credited in the magazine for strengthening the bond between UPMC Altoona and UPMC Magee-Womens Hospital in Pittsburgh.
He has been the chief executive officer and president of Lee Industries since 1985. The family-owned company manufactures processing equipment for several industries, including pharmaceutical and chemical companies.What we can learn about him from UPMC’s 990s: UPMC discloses one conflict of interest related to Mr. Montler.
From 2015 to 2018, Michael Montler — a family member of Robert Montler — was compensated a total of approximately $242,000 by UPMC. According to Michael Montler’s LinkedIn account, he is an informatics nurse at UPMC Altoona. Previous
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Ann S. PeppermanMcCormick Law Firm, attorneyWhat she brings to the board: A familiarity with UPMC Susquehanna (of which she’s chairman of the board) and a career working as an attorney providing services to health care providers as her clients.What she’s said publicly about UPMC-Highmark saga: Nothing.How she responded to the Post-Gazette’s request for an interview: Ms. Pepperman did not respond.Background: Ms. Pepperman was chairman of the board of Susquehanna Health in the 1990s, which became UPMC Susquehanna.
She “developed a passion for providing the best quality health care to the community” through her law practice,” according to an article in Pennsylvania Business Central. Previous
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Louis B. PlungLouis Plung & Co., managing partnerWhat he brings to the board: A career of providing tax, audit and consulting services for companies, as well as experience on the board of the Jewish Healthcare Foundation.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Plung did not respond.Background: Since 1992, he’s been managing partner of Louis Plung & Co., which provides consulting for a wide variety of industries. Throughout his career, he’s specialized in financial analysis, strategic planning, mergers and acquisitions and estate planning, according to his company biography.
Mr. Plung is former chairman of the board of the United Jewish Federation of Pittsburgh. The federation gave him its Emanuel Spector Memorial Award in 2014 for his leadership. Previous
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Mark H. RaimyWelders Supply Co., chief executive officerWhat he brings to the board: Familiarity with UPMC Hamot (of which he serves on the board) and owner of the region’s largest supplier of industrial gas, medical gas and hard goods to the manufacturing, health care, laboratory and restaurant industries.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Raimy did not respond.Background: He chairs the UPMC Hamot board of directors and is a member of the UPMC Investment Committee.
He has served as president and executive committee board member of the Gases and Welding Distributors Association.What we can learn about him from UPMC’s 990s: UPMC discloses one conflict of interest related to Mr. Raimy.
In 2017-18, Welders Supply Co. — of which Mr. Raimy is owner — purchased health insurance from UPMC for approximately $143,000. Previous
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Susan Baker ShipleyWestern Pennsylvania and Ohio Valley Huntington Bank, presidentWhat she brings to the board: More than two decades of banking experience, service on numerous local boards (including the Manchester Bidwell Corp. and The Andy Warhol Museum) and participation in a network of female philanthropists.What she’s said publicly about UPMC-Highmark saga: Nothing.How she responded to the Post-Gazette’s request for an interview: Ms. Shipley’s secretary said, “Please contact [UPMC spokesman] Paul Wood.”Background: Ms. Shipley worked for PNC and Citizens Bank in Pittsburgh before becoming Huntington’s regional president in November 2012.
In 2010, she co-chaired a fundraising campaign with the Women’s Leadership Council, which allowed female philanthropists in the region to connect with other professionals. The other co-chair was Diane Holder, executive vice president and president of the UPMC Insurance Services Division, and president and CEO of UPMC Health Plan. “More and more women are becoming top earners, and they are looking to plan for their futures,” Ms. Shipley told the Post-Gazette then. “Philanthropic giving is part of that whole plan. And if they can’t contribute now, they’re putting a structure in place to meet goals at a different point in their lives.”
Ms. Shipley graduated from the University of Pittsburgh’s Katz Graduate School of Business with a master’s in business administration. Previous
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Gregory SpencerRandall Industries Inc., chief executive officerWhat he brings to the board: Experience as CEO and co-founder of one of the largest minority-owned chemical manufacturing companies in the country, and status as one of the 50 most influential leaders in the region as named by the New Pittsburgh Courier.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Reached via email, Mr. Spencer said, “Thanks but I am not interested in doing an interview.”Background: He was senior vice president and chief administrative officer of Equitable Resources from 1994 to 2003, responsible for facilities management and human resources, among other things.
Before that, he spent more than two decades at U.S. Steel as a general manager.
Since 2006, he’s owned Randall Industries, acquired by Randall Enterprises — which he created with his son two years before.
He has been credited with mentoring many young professionals and has served as chairman of the Hill House Association, African American Chamber of Commerce, and Goodwill Industries. Previous
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John P. SurmaUnited States Steel Corp., retired chairman and CEOWhat he brings to the board: Decades of executive leadership and philanthropy, including a stint leading one of the world’s largest steel producers during the global recession a decade ago.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Surma did not respond.Background: The native Pittsburgher was elected president and CEO of U.S. Steel in 2004 and, at age 51, ascended to chairman at a time when a rising tide of imports was heading for the U.S. Upon his retirement in 2013, the company had struggled to produce profits in the years previous.
A Penn State graduate, he served on its board of trustees beginning in 2007 and pledged $5 million to its business school, where the deanship is named after him and his wife.
As a Penn State trustee, Mr. Surma was the person who told football coach Joe Paterno that he was fired because of the Jerry Sandusky child sexual abuse scandal that rocked Penn State in 2011. That year, university President Graham Spanier was also fired from Penn State, and he subsequently left U.S. Steel’s board — of which Mr. Surma was chairman.
Before joining U.S. Steel, he served in several executive positions with Marathon Petroleum and worked for Price Waterhouse LLP. Previous
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John J. VerbanacSumma Development LLC, chief executive officerWhat he brings to the board: Political connections garnered from experience in business, consulting and government.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: A secretary in Mr. Verbanac’s office said to talk to UPMC spokesman Paul Wood.Background: Mr. Verbanac heads the Downtown-based consultancy Summa Development, the real estate arm of investment holding company Summa Group LLC.
He was involved with the growth of two start-up companies, IdeaMill and Neri-Verbanac Public Affairs, and led the restructuring of consultancy BrabenderCox as its executive vice president.
He began his career working for U.S. Sens. Rick Santorum and John Heinz. More recently, he consulted for Pittsburgh mayoral campaigns and was a friend and adviser to former Mayor Luke Ravenstahl, as well as a communications consultant to the 10-county Southwestern Pennsylvania Commission.
He is an alumnus of the University of Pittsburgh and a former university board member. Previous
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Patrick D. GallagherUniversity of Pittsburgh, chancellor and chief executive officerWhat he brings to the board: Several years at the helm of the University of Pittsburgh and experience directing the National Institute of Standards and Technology.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Via email, University of Pittsburgh communications manager Kevin Zwick said to reach out to UPMC spokesman Paul Wood.Background: Mr. Gallagher, a Pitt graduate with a doctorate in physics, took over as chancellor in 2014.
In 2009, President Barack Obama appointed Mr. Gallagher to direct the National Institute of Standards and Technology. He also served as acting deputy secretary of commerce. He completed his term on Mr. Obama’s Commission on Enhancing National Cybersecurity in 2016.
Today, Mr. Gallagher serves as the chair of Internet2, which describes itself as a “member-driven advanced technology community.” Previous
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Richard S. HamiltonAAA East Central, chairmanWhat he brings to the board: Decades of leadership at AAA, moving through the business from roadside assistance to travel and operations, and familiarity with UPMC Passavant (of which he’s board chairman).What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Hamilton did not respond.Background: For two decades up until 2010, Mr. Hamilton served as president and CEO of AAA East Central. He engineered more than 35 mergers with other AAA clubs during his tenure, making AAA East Central the sixth largest affiliate in AAA with more than 2.6 million members, according to his high school alumnus biography.
He is board chairman for UPMC St. Margaret and UPMC Passavant hospitals. He is also on the boards of UPMC Senior Communities and UPMC Pinnacle Health System.What we can learn about him from UPMC’s 990s: Mr. Hamilton is in a business relationship with fellow board member W. Duff McCrady. It’s a relationship that has at least extended back to 2015. UPMC spokesman Paul Wood declined to characterize this relationship further. Previous
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Dr. Arthur S. LevineUniversity of Pittsburgh, senior vice chancellor for the health sciences and John and Gertrude Petersen Dean, School of MedicineWhat he brings to the board: Knowledge of the partnership between UPMC and Pitt and experience leading all six health sciences schools.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Via email, an administrator in Mr. Levine’s office wrote, “Dr. Arthur Levine is traveling and will not be able to respond to your email. He suggests you contact [UPMC spokesman] Paul Wood.”Background: Dr. Levine is senior vice chancellor for the health sciences and John and Gertrude Petersen Dean of the University of Pittsburgh School of Medicine.
He announced he was stepping down from the chancellorship last January and began transitioning by opening a new laboratory in Pitt’s Brain Institute, “where he will pursue Alzheimer’s disease research,” according to a university press release.
In the 1980s and 1990s, he was scientific director of the National Institute of Child Health and Human Development, focused on developmental biology. Previous
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Douglas A. NeidichGreenWorks Development LLC, chief executive officerWhat he brings to the board: Experience in business and mechanical engineering and familiarity with UPMC Pinnacle (of which he’s chairman of the board.)What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Neidich did not respond.Background: He started GreenWorks — a real estate development company — in 2005, calling it an “exercise now in trying to fundamentally revitalize” the Steelton, Dauphin County, area. In the near decade following its launch, the firm developed more than $25 million worth of projects, according to an article in Progressive Engineer Profiles.
Before founding GreenWorks, he launched the electronic connector developer InterCon Systems, which grew to more than $20 million in sales before he sold it in 2005.
He is an alumnus of Penn State University. Previous
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W. Duff McCradyMcCrady Corp., presidentWhat he brings to the board: Decades as president of McCrady Corp.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. McCrady did not respond.Background: Mr. McCrady is president of McCrady Corp. and a director and treasurer of Chatham University.What we can learn about him from UPMC’s 990s: Mr. McCrady is in a business relationship with fellow board member Richard Hamilton. It’s a relationship that has at least extended back to 2015. UPMC spokesman Paul Wood declined to characterize this relationship further. Previous
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Mark A. NordenbergUniversity of Pittsburgh, chancellor emeritusWhat he brought to the board: Longtime experience at the University of Pittsburgh, where he served as chancellor until 2014 and then took over as chair of the university’s Institute of Politics.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Nordenberg did not respond.Background: Mr. Nordenberg served as the University of Pittsburgh’s chief executive for nearly two decades up to 2014, when he was succeeded by Patrick Gallagher — who is also on the UPMC board.
He was credited with tightening the university’s relationship with UPMC, merging the positions of the dean of the School of Medicine and senior vice chancellor for the health sciences in 1997. The following year, he announced that Pitt and UPMC reached an agreement to enhance their bond over the following decade, including that UPMC would provide more than $1 billion for Pitt’s Schools of the Health Sciences.
The Pitt-UPMC agreement under Mr. Nordenberg also guaranteed that the university would have representation on UPMC’s board. “Pitt and UPMC’s shared mission of translating stellar biomedical research from the lab to cutting-edge care at the bedside continues to be extraordinarily successful, thanks in large part to Mark’s unwavering commitment to excellence and the community,” UPMC President Jeffrey Romoff told the Post-Gazette in 2014.What we can learn about him from UPMC’s 990s: Mr. Nordenberg made approximately $900,000 from the university and its related organizations in Pitt’s 2018 fiscal year.Who has replaced him on the UPMC board: Thomas E. Richards, who was elected chair of the University of Pittsburgh board and to UPMC in June, after the UPMC-Highmark agreement was signed. Mr. Richards is executive chairman of the board at CDW, a technology solutions provider. Previous
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William E. Strickland Jr.Manchester Bidwell Corp., president and chief executive officerWhat he brought to the board: Philanthropic experience and community-level involvement at the helm of several local groups.What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Passed along by an assistant, Mr. Strickland wrote via email, “I have rotated off of the UPMC Board of Directors effective June 12, 2019. If you have questions regarding UPMC, please contact them directly.”Background: Mr. Strickland is the founder and executive chairman of Manchester Bidwell Corp. Formerly, he was president and CEO of the organization, as well as its subsidiaries, Manchester Craftsmen’s Guild and Bidwell Training Center, according to a company biography.
In 2010, President Barack Obama chose Mr. Strickland for a spot on the White House Council for Community Solutions. Two years later, he was selected by then-Pennsylvania Gov. Tom Corbett to serve on the Task Force for Child Protection.Who has replaced him on the UPMC board: James P. Covert, former CEO and president of The Institute for Transfusion Medicine. Previous
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Stephen R. TritchWestinghouse Electric Co., former chairmanWhat he brought to the board: Leadership experience with Westinghouse Electric Co. and familiarity with the UPMC-University of Pittsburgh relationship. (He served as Pitt board chair until 2015.)What he’s said publicly about UPMC-Highmark saga: Nothing.How he responded to the Post-Gazette’s request for an interview: Mr. Tritch did not respond.Background: For four years before he retired in 2010, Mr. Tritch chaired the board of Westinghouse Electric Co., where he had previously served as CEO, according to his biography on Koppers’ website.
After retirement, he continued to serve on the board of The Shaw Group Inc. and, since 2018, has been a director of Charah Solutions, which provides services to the power generation industry.
From 2009 to 2015, he chaired the University of Pittsburgh board of trustees.Who has replaced him on the UPMC board: Vaughn Clagette, a physician with the Southeast Permanente Medical Group. Previous
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Margaret P. JoyMcCarthy McDonald Schulberg & Joy, partnerWhat she brought to the board: Four decades of experience practicing family law and a familiarity with UPMC Hamot (of which she is a board member) and Magee-Womens Research Institute & Foundation (of which she used to be board chairman).What she’s said publicly about UPMC-Highmark saga: Nothing.How she responded to the Post-Gazette’s request for an interview: Reached via email, Ms. Joy wrote, “Thank you for contacting me about UPMC. My term on the UPMC Board expired on June 30, so I would not be available for this interview.”Background: She obtained her law degree in 1978 from the University of Pittsburgh School of Law.
In 1993, Ms. Joy co-founded McCarthy McDonald Schulberg & Joy. Over her career, she managed cases with marital estates in excess of $500 million and “represented some of the most prominent families in the region,” according to a biography on the firm’s website.
Her term as a board member of UPMC Magee-Womens Hospital came to an end June 30. She’s also served on the board of UPMC Hamot in Erie.
Ms. Joy is on the board of the Greater Pittsburgh YMCA.Who has replaced him on the UPMC board: Likely Michael P. Lyons, head of Corporate & Institutional Banking and Asset Management Group at The PNC Financial Services Group. UPMC spokesman Paul Wood did not confirm if Mr. Lyons is considered her official replacement. Previous
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